A major international takeover, some options trading and a Facebook friendship have a Thai trader in trouble with the Securities and Exchange Commission.

Associated Press

The biggest buyout of a U.S. company by a China-based bidder now includes charges of insider trading, as the SEC today moved against a Thai trader who the agency alleged made $3.2 million in paper profits betting on Smithfield Foods ahead of its sale to Shuanghui International Holdings. The complaint makes no allegations of wrongdoing against the companies in the deal, only the trader.

The SEC sought to freeze the trader’s account, which the complaint says was opened in May and only used to purchase thousands of options on Smithfield and 100 shares of the pork processor just ahead of the deal.

The SEC isn’t clear on how he was tipped but has found a tie on his Facebook page. Apparently the trader, who is identified as employed at a “plastics company” has a Facebook friend who works at a Thai investment bank that advised another company Charoen Pokphand Foods PCL, known as CP Foods, that explored a bid for Smithfield.

Smithfield agreed to the deal with China’s Shuanghui last week for $34 a share, a 31% premium to shares before the deal and above the $29 to $30 strike prices on the options that were purchased, according to the SEC. The options would have expired in July, the SEC said.

WSJ has also reported on options activity ahead of the buyout of Nexen Corp. by China’s Cnooc and in Constellations Brands ahead of news that Anheuser-Busch InBev was buying Grupo Modelo, which included an important transaction for Constellation.